Auto stocks fell on Thursday as the Nifty Auto index dropped 2.01 per cent to 24,634.55. Many major shares traded in the red, with Tube Investments of India losing 4.79 per cent. Investors now watch demand and earnings closely, while brokerages updated their target prices for several top auto companies.

Auto stocks came under pressure on Thursday, with the Nifty Auto index falling 2.01 per cent to 24,634.55. The decline was broad-based, with most major auto stocks trading in the red.

TVS Motor was down 0.63 per cent at Rs 3,901.10. The stock touched an intraday high of Rs 3,964 and a low of Rs 3,884. It recorded traded value of Rs 262.74 crore.

Uno Minda declined 0.89 per cent, while Hyundai Motor India fell 1.51 per cent. Eicher Motors and Maruti Suzuki slipped 1.67 per cent and 1.75 per cent, respectively.

Mahindra & Mahindra declined 1.78 per cent, while Bajaj Auto fell 1.84 per cent. Sona Comstar was down 2.16 per cent and Bosch fell 2.45 per cent.

Hero MotoCorp declined 2.63 per cent, while Bharat Forge fell 2.70 per cent. Ashok Leyland and Tata Motors Passenger Vehicles dropped 2.78 per cent and 2.79 per cent, respectively.

Motherson International fell 3.05 per cent, while Tube Investments of India was the biggest loser among the stocks listed, declining 4.79 per cent.

The weakness in auto stocks comes as global and domestic investors assess the outlook for automobile demand, earnings and valuations. Against this backdrop, brokerages have revised their target prices for several companies while retaining their existing ratings.

HSBC maintained its buy rating on Mahindra & Mahindra with a target price of Rs 4,200.

The brokerage maintained a hold rating on TVS Motor but raised its target price to Rs 4,500 from Rs 4,200. HSBC also maintained its buy rating on Ather Energy and raised the target to Rs 1,600 from Rs 1,450.

For Ashok Leyland, HSBC retained its hold rating but cut the target price to Rs 179 from Rs 190. The brokerage also reduced its target for Tata Motors Passenger Vehicles to Rs 340 from Rs 360.

HSBC maintained a hold rating on Hero MotoCorp and lowered its target price to Rs 5,900 from Rs 6,300.

On Maruti Suzuki, HSBC retained its buy rating but reduced the target price to Rs 14,500 from Rs 16,000.

Goldman Sachs maintained its buy rating on Hyundai Motor India but cut the target price to Rs 2,460 from Rs 2,640.

The brokerage retained its buy rating on Eicher Motors but lowered the target to Rs 8,600 from Rs 9,400. For TVS Motor, Goldman Sachs maintained its buy rating and raised the target price to Rs 4,950 from Rs 4,840.

Goldman Sachs maintained its buy rating on Maruti Suzuki but cut the target price to Rs 14,600 from Rs 17,000.

For Hero MotoCorp, the brokerage retained its sell rating and reduced the target to Rs 4,350 from Rs 4,820.

Goldman Sachs also maintained its buy rating on Mahindra & Mahindra but lowered the target price to Rs 3,700 from Rs 3,900. The brokerage retained its buy rating on Bajaj Auto and cut the target to Rs 12,000 from Rs 12,800.

For Tata Motors Passenger Vehicles, Goldman Sachs maintained its neutral rating and lowered the target price to Rs 290 from Rs 300.